It's important to note that when the investment was made, enterprise tech companies (like Workday) like were getting a really high valuation, whereas consumer tech companies weren't doing so well. Investors like a16z probably wanted to invest as much as possible before the enterprise IPO market would go south. Moreover, I am sure investors probably had strong liquidation preferences, ensuring a profit in the case of an exit or IPO.
We're now seeing the downsides of their thesis. Workday's market cap has since cratered, down 33% in the past year, indicating a weakening interest in the enterprise IPO market. Zenefits itself has a number of growing concerns- regulatory and competition concerns (ADP is only getting better by the day).
We're now seeing the downsides of their thesis. Workday's market cap has since cratered, down 33% in the past year, indicating a weakening interest in the enterprise IPO market. Zenefits itself has a number of growing concerns- regulatory and competition concerns (ADP is only getting better by the day).